Why is LPG, and not PNG, facing crisis due to US-Iran war? Know key difference between two household fuels

The government has urged people across the country to ditch the Liquefied Petroleum Gas and adopt Piped Natural Gas (PNG). The Centre has maintained that encouraging people to shift from LPG to PNG is not because of the alleged "LPG shortage", but because PNG is a cleaner and cheaper fuel.

As a precautionary measure amid the Middle-East war, the government has set guidelines for the use and procurement of LPG and also listed a few dos and don'ts for PNG users. They are:

1. No person having a PNG connection shall obtain a domestic LPG connection, or take refills of domestic LPG cylinders from any government oil company, or through their distribution.

2. No person can have both PNG and LPG connections. "Such persons will be required to immediately surrender their domestic LPG connection," the government said in a directive.

3. People must apply for a PNG connection if feasible in their area. In areas where it's not feasible, people will need to get an NOC for an LPG connection. The order by the Ministry of Petroleum and Natural Gas states that LPG supply "shall cease after three months" if a household does not opt for PNG despite availability.

4. No black marketing and rationing of LPG is allowed.

LPG stands for Liquefied Petroleum Gas, and is composed mainly of propane and butane. Meanwhile, PNG stands for Piped Natural Gas and consists primarily of Methane gas (CH4) and other higher hydrocarbons in small percentages.

LPG is supplied in liquid form in cylinders, whereas PNG is supplied through a gas pipeline.

There's a significant difference in the way these two gases are formed.

LPG is produced during the refining process of crude oil or extracted during the processing of natural gas.

"The gases produced in this process are mainly propane and butane with small amounts of other gases. These gases are liquefied through pressurisation to make them easier to transport and store," Energy Education explains on its website.

Meanwhile, PNG is procured from the oil/gas wells and transported through a network of pipelines. "The raw gas is processed to remove impurities, transported via pipelines, and distributed at lower pressures to homes and industries through a network of pipelines across the country.

There is not just one but many reasons to favour PNG over an LPG connection. Here's why one should prefer using PNG:

1. PNG is eco-friendly: Natural Gas is one of the cleanest fuels

2. PNG is inexpensive: Indian Oil says that Natural Gas is generally cheaper than liquid and other gaseous fuels

3. Uninterrupted supply of PNG: Supply of PNG is continuous and regular (24*7)

4. PNG has non-toxic, non-corrosive and non-carcinogenic properties

5. You only pay for the gas you use. PNG is metered similar to electricity

6. No booking hassles: No need to worry about scheduling deliveries, running out of fuel or replacing gas cylinders

7. There's no need to store PNG, as it is supplied through pipeline like water

8. PNG is absolutely safe. In case of a leakage, the gas will rise and disperse into the surrounding air with adequate ventilation.

India imports approximately 60 percent of LPG needs and "out of these imports about 90 percent come through the Strait of Hormuz, which has been impacted due to current happenings," the government said earlier.

Oil Minister Hardeep Singh Puri had said in Parliament earlier this month, “India was previously importing approximately 60 percent of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait and 40 per cent is produced domestically.”

Meanwhile, for PNG, domestic natural gas and imported LNG roughly form about 50:50 share in total consumption. The source for PNG in India is domestic natural gas fields and imported LNG (converted back to gas).

According to data from the Ministry of Petroleum & Natural Gas, India produced about 18,646 MMSCM of natural gas domestically and imported about 19,031 MMSCM of LNG during the period April-October, 2019. "This gas also caters to demand of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG)," the government has said in a press release.

Is there a shortage of LPG, petrol?

While the government has denied LPG and petrol shortage claims as "rumours", several restaurants and shops have cut short their menus. Several companies have reportedly informed employees about limiting their cafeteria menus. A few also advised them to work from home and "bring their own food".

In a press release on March 26, the Ministry of Petroleum & Natural Gas said the supply of LPG is affected due to prevailing geopolitical situation, but there's "no reported dry-out at LPG distributorships" and that “delivery of Domestic LPG Cylinders is normal.”